Don't know much about any of the specifics of that machine, but I've been running Gentoo on an ARM netbook for almost a year, and it works fine. And I think that looks more powerful than my machine.

You'll probably want to set up distcc or some other method to share compiling with a more powerful computer, or emerging anything large will take a looooong time, but that's well documented and not hard.

You'll probably run into a few snags, since Gentoo's (and most upstreams') arm support is not as well polished as x86 or amd64, but I wouldn't expect any show-stopping problems.

But you may not like the fact that the keyboard is missing some important keys ("del", "pgup", "pgdown", ...). And the inserted SD card is sticking out from the slot, so you would not want to transport this netbook with the SD card inserted, which makes SD card not a very attractive choice for installing your primary system on it.